8/31:  WRIGLEY, N.W.T. - Thursday night, Deh Cho delegates at a special assembly here withheld support for a pipeline project. (Look for a more complete report here this U.S. Labor Day Weekend; the implications of Deh Cho action are far-reaching; also, review earlier reports this week, below, and substantial archive reports.)     

ALASKA’S GOVERNOR TAKES ACTION.  Northern Gas Pipelines readers will recall that the governor’s pipeline advisory council members and a joint pipeline legislative committee have been concerned with the rapid movement of events. 

At the Council’s August 2 Juneau meeting, member Charlie Cole observed that the Council should, “…do a little more than simply alerting the Governor….”  Member Ken Thompson recommended that one action step the Council could take would be to give input by a certain date.  “I am planning to write the Senate Energy Committee myself….” Cole concluded that, “If we want to see the route follow the highway we should not be sanguine about legislation…  At an August 13 meeting in Anchorage, members agreed on the importance of providing the Governor with a matrix covering principles the Administration should pursue.  The Alaska State Legislature's Joint Committee on Natural Gas Pipelines has expressed similar concerns.  Focus of the legislative committee and governor’s council presently, seems to be the fact that Senate Energy Committee proceedings could take up the President’s energy bill in September, already passed by the House.  The two primary issues of interest to Alaska in that bill are ANWR and possible gas pipeline amendments.  The draft of amendments has been extensively covered here, and may be downloaded from the column on your left. 

Yesterday, Governor Tony Knowles (Photo: Governor Knowles confers with executive assistant, Mike Abbott, at IOGCC conference, 5/14/01)  acted on this concern, outlining a 10-point plan to boost gasline development through federal legislation.  That proposal (provided by Bob King in the Governor's office) includes mandating the Alaska Highway route in national legislation, providing tax incentives to make the project economic, expanding opportunities for new companies that might be interested in gas development and providing provisions for Alaska and Native hire and access to gas by Alaska communities.  "Alaska is perfectly positioned to supply the nation with affordable, environmentally sound energy and be a shot in the arm to the sagging national economy like nothing else on the horizon," Knowles said in a speech before the Resource Development Council (See Anchorage Daily News story, here).  PLEASE CLICK HERE FOR TEN POINTS AND BALANCE OF EXTENDED STORY.

8/28:  ANCHORAGE - Sen. John Torgerson has invited top Government officials from northwest Canadian provinces and territories to join the Alaska Legislature in an international working group ... SEE FULL STORY HERE.

8/27:  TODAY MARKS ANOTHER MILEPOST FOR NORTHERN GAS PIPELINES: after three months of hard work, we hope you will consider this a more user-friendly website!  Please bear with us as we proceed to fix scores of broken links.  As always, send us your suggestions for improvement and news tips.   In the flurry of activity, don't miss our weekend report, below.   -dh       *     Henry Hub Gas Prices: August 24, $2.77; August 17, 3.23.         *     Last Friday, members of the Joint Committee on Natural Gas Pipelines completed the fifth day of their western Canada tour, meeting with government and industry officials in the Yukon and Northwest Territories, Alberta and British Columbia.  As reports come in, we will provide them to you.  This is the first:  Northern News Services, YELLOWKNIFE, by  Mike W. Bryant-Twenty pounds of King Crab legs and a sense of goodwill were not enough to bridge the gulf between Alaska and NWT politicians over gas pipeline routes. A dozen Alaska state senators and House representatives met with Finance and Resources, Wildlife and Economic Development Minister Joe Handley (Photo-left) Tuesday to try and iron out differences over pipeline routes.  …  “Their preference is the Alaskan pipeline, because it's to their advantage," said Handley at a reception held at the Legislative Assembly Building to welcome the Alaskan delegation. "That's a point we agree to disagree on, but the world doesn't begin and end with pipelines. Our priority is to get the Mackenzie Valley pipeline built. The over-the-top route would be just an added benefit." The leading argument championed by Handley is that the Mackenzie Valley route would likely be significantly cheaper to build….  Handley had also stated earlier that if Alaska carries through with its plan, it may be in violation of the North American Free Trade Agreement, a point supported by Intergovernmental Affairs Minister Stephane Dion in his meeting with Premier Stephen Kakfwi on Monday. … "Where's our jobs, what's in it for our people?" said (Alaska Senator John) Torgerson (Photo-right), when asked why his government was opposed to an over-the-top route.  "We have several industries interested in building plants. Anchorage is a very large centre and we need gas."   A possible scenario, providing the move by the Alaskan government is not defeated through the Free Trade Agreement, would be two pipelines being built.  Premier Kakfwi has told the federal government to expect a proposal for a Mackenzie pipeline before the year is out, but producers' group spokesperson Hart Searle said their plans are still on hold….

 8/25-26 (Weekend):   ANCHORAGE DAILY NEWS--Columnist/economist David Reaume says, "There really is such a thing as a window of opportunity. If the state of Alaska chooses to hold out for an Alaska pipeline alternative, Alaskans may be left with nothing. The Department of Natural Resources is letting a contract to a private consulting firm to study the alternatives once again. If the answers come out the way they have in the past, Alaska's leaders will have no responsible option other than supporting the Mackenzie Delta route. That is why these leaders need to keep their powder dry."       *      ANCHORAGE--On Friday, Senator Frank Murkowski clarified status of Senate actions affecting resolution of gas pipeline and ANWR issues.  Early in the day, he told Northern Gas Pipelines that decisions had not been made on a new legislation draft for expediting approval of a northern gas pipeline application (Click in the left margin for a copy).  “I don’t think you make that decision now,” he said.  ‘We’ve asked the gas producers for a year to present draft legislation for consideration which would expedite construction of a project and provide for a coordinating office. The draft we now have goes farther than we anticipated but that is not surprising as it establishes a starting position and provides leverage for negotiations.”  We have not and do not intend to introduce this draft legislation, Murkowski said.  What we will do is take the proposals and hold open hearing--an open forum--in Washington and perhaps Alaska and we expect to have input from the state Administration, the Legislature, Foothills and many other interested parties.  Alternatives for introducing portions of the draft and new input from the state and others could include amendment of the House version of the Energy Act by the Senate Energy Committee or including modifications when the bill reaches the Conference Committee.  The pipeline project has to be in the best interests of Alaska and the gas producers and other parties know this.       *     At noon, Murkowski addressed Commonwealth North (CWN) members, updating them on many Senate issues.  Sharing the head table with former Governor Walter J. Hickel, Murkowski said a gas pipeline provided the potential for “envisioning a transportation right-of-way…,” that could accommodate a fiber optic cable and possibly a railroad.  He congratulated Congressman Don Young and those who worked with him to secure passage in the House version of the Energy Act an ANWR provision.  While ANWR has been a Republican-Democrat issue in the past, he said, “…that has changed.  We are pleased to see the Operating Engineers joining the teamsters and others to increase their support for the President’s energy bill.”  He said the Senate is currently a few votes short and there is the potential of a filibuster.  But the Senate leadership will have to consider growing support for ANWR based on job impact.  “There’s never been a better time and the House version has a positive dimension: a limitation of a 2,000 acre development footprint.  In answer to questions, he acknowledged some west coast leaders did not yet support reasonable ANWR development.  He expressed hope for western Congressional support in view of a growing recognition that virtually all of Alaska's oil moves to west coast consumers and that opposing modest ANWR development supports jobs and less environmentally secure oil development elsewhere in the world.  -dh   *     CWN Chair Nancy Usera (Photo-below, with Senator Frank Murkowski) announced Friday that the “Commercialization of Alaska North Slope Gas Study Group” had produced an interim report for Board consideration and that the final report could be released soon.     *     PRESIDENT MAY VISIT ALASKA—In his Commonwealth North presentation in Anchorage last Friday, U.S. Senator Frank Murkowski said that President George Bush may visit Alaska in mid-October.       *       CBC, EDMONTON - Deputy Premier Shirley McLellan says Alberta won't accept any federal grab of the province's resource revenues.  CBC, CALGARY - Longtime Alberta Liberal Nick Taylor says he is unaware of any federal plans to siphon more money from Alberta.

8/24:  U.S. Senator Frank Murkowski updated Commonwealth North (CWN) members in Anchorage today on current status of ANWR and a gas pipeline legislation draft scheduled for possible action in September.  (Photo-right: Murkowski with CWN Chair Nancy Usera and Alaska Export Council's Chuck Webber.  Complete report follows, this week-end)      *      EDMONTON JOURNAL, By Ed Struzik--The Mackenzie is the longest river in Canada, passing through one of the few great unspoiled areas of the world. It is also home and a source of traditional livelihood for the few thousand aboriginal people who live along its banks.  …  Twenty-five years ago, many of the people living along the Mackenzie Valley vowed to lay down their lives to stop these kinds of proposed developments. Now most have changed their minds.   With as much as 64 trillion cubic metres of gas to be found, a consortium of Canadian companies working with an aboriginal pipeline group is looking at the feasibility of building a $3-billion natural gas pipeline from the delta south to northern Alberta.      *     CBC--EDMONTON - Prime Minister Jean Chrétien appeared to drill into a nerve in Alberta Thursday when he suggested the province share more of its energy wealth.      *     WESTERN CANADA-- Last night members of the Joint Committee on Natural Gas Pipelines completed the fourth day of their western Canada tour, meeting with Alberta's elected and appointed leadership and industry leaders (See schedule on daily reports below.)  They then flew to Vancouver where this morning they're scheduled to be received by the Ministry of International and Intergovernmental Relations.  At the World Trade Center, they'll meet Premier Gordon Campbell (Photo, upper left) and Andrew Wilkinson, Deputy Minister of the department.  After discussing various issues with representatives of premier Campbell's government, including gas pipeline matters, they're scheduled to return to Alaska by way of Seattle.  (Reports to follow)   *     The Alaska Highway Natural Gas Policy Council met in Valdez today (See below for agenda; report to follow)     *     Andrew Lundquist-Executive Director, National Energy Policy Development Group-Alliance Annual Meeting, 9/12/01, Sheraton Anchorage Hotel, 907.563.2226

8/23:  EDMONTON:  Yesterday, members of the Joint Committee on Natural Gas Pipelines completed the third day of their Western Canada trip, touring the Legislative Assembly in Yellowknife and having private meetings before flying here.  Today, they will participate in an Alberta energy roundtable discussion with MLA  Mike Cardinal, Minister of Sustainable Resource Development;  MLA Murray Smith, Minister of Energy; MLA Halver Jonson, Minister of International and Intergovernmental Relations;  Wayne Knight (Alberta's Rep. to Energy Council) and Wayne Clifford, Deputy Minister, International Relations.  They'll enjoy a working lunch at the University of Alberta with Chancellors Independent Liaison to discuss research, development and training for oil and gas support technicians (members of the Alberta's Cabinet and MLA's will also be present).  This afternoon they're scheduled for an economic development discussion with private industry leaders and government officials.  The group will drive to Fort Edmonton Park for dinner with Premier Ralph Klein, Ministers Cardinal, Murray, Pearl Calahasen (whom we've had the pleasure of seeing in Anchorage), Deputy Premier McClellan and industry leaders.  Tomorrow: British Columbia.     *     VALDEZ:    Chaired by Jim Sampson (photo-left, visiting Phillips' LNG facility in Kenai, 5-17-01), the Alaska Highway Natural Gas Policy Council meets today in Valdez at the Convention and Civic Center.  They'll hear Dick Peterson (Photo-right) describe his Alaska Gas-To-Liquids project and BP's Shane O'Leary (See 8/17 story below) describe his company's Kenai GTL project, under construction.  Dave Dengel will speak for the Alaska Gasline Port Authority, LNG project.  (Reports follow; also, see our LNG and GTL pages.)  The Council has already held public hearings in Fairbanks, Kenai, Tok, Barrow, Juneau and Anchorage.  The next scheduled council meeting is September 17 in Anchorage.     *     ANCHORAGE DAILY NEWS, by Sarana Schell – (GTL has more potential for northern stranded gas reserves than is commonly believed.  See our GTL Page) The possibility of turning Alaska's vast natural gas reserves into ultra clean-burning fuel for diesel engines got a boost recently when the U.S. Department of Energy awarded a $16 million research grant to a subsidiary of Koniag Inc., the Native corporation for the Kodiak region. Integrated Concepts & Research Corp., the Koniag subsidiary, and ICRC's partners will match the grant, so the project will total $32 million. ICRC has partnered with Syntroleum, Marathon Oil, the University of Alaska, the U.S. Park Service, DaimlerChrysler, the Massachusetts Institute of Technology and economic consultants A.D. Little for the DOE-funded research.     *     INUVIK, NWT - More Gwich'in will have the opportunity to get jobs with a newly formed oil and gas company, Gwich'in Ensign Oilfield Services.     *     NATIONAL POST--Robert Zoellick, the U.S. Trade Representative, said the Bush administration is acting within its trade laws by protecting U.S. interests from subsidized Canadian softwood.  Earlier this year, Mr. Bush outlined an energy policy that promised increased exploration in the North American oil patch -- including Canadian fields -- and appointed Dick Cheney, his Vice-President, to explore means to deal with a looming U.S. energy crisis.  In addition, the U.S. Congress has spent hours debating methods of shipping Alaskan and Mackenzie Delta gas to U.S. markets through Canadian pipelines.  After a meeting with Mr. Chrétien in Edmonton yesterday, Ralph Klein, the Alberta Premier, said any linkage between trade in lumber and oil and gas "would have a disastrous effect" on the province's economy.  "If the National Energy Board were to intervene and stop pipeline development ... it would deny Alberta the opportunity to feed into that network. It would have very significant financial impact," he said.

8/22:  ANCHORAGE DAILY NEWS, Fairbanks, AP -- A delegation of Alaska lawmakers is touring Western Canada to talk with Canadian government leaders about a proposed natural gas pipeline.   The trip, which began Monday, comes on the heels of a consultant's warning that Alaskans should work more cooperatively with the Canadians or risk losing the proposed project altogether. … Ed Small, a state-hired consultant with Cambridge Energy Research Associates, advised the legislative pipeline committee last month that Alaska should take a conciliatory stance in talks with the Canadians. Discord could kill the proposed project, he said.      *      Northern News Services, by Mike W. Bryant, Yellowknife (Aug 22/01) - …  Premier Stephen Kakfwi (Photo) met with Intergovernmental Affairs Minister Stephane Dion and Prime Minister Jean Chretien, … to discuss ways to ensure the Mackenzie Valley pipeline gets rolling ….    Both Chretien and Dion were insistent that no deal could be reached until oil and gas producers are on board and applications for development are submitted.  …  "The premier is very optimistic that before the end of the year the producers will come up with a proposal for the Mackenzie Valley," Dion announced on Monday.  "It is very important because the National Energy Board will have to review the proposal, and if there is no proposal they will not have any review, and not any decision to make about it."  For his part, Chretien reiterated the need to act quickly….  "I want to make sure the natural gas of the Delta gets access to the markets," the prime minister said. …  Before any development takes place, however, the federal and territorial governments will have to coddle some NWT aboriginal groups who have since soured on building a pipeline after signing an agreement in January 2000.  Land claim agreements, particularly with the Deh Cho, remain unsettled -- a process that could take another four years or more.  It is a point of contention the premier said he sees all too clearly.  "A year and a half later, some of them have lost confidence," said Kakfwi.  "In my view it's because there's not enough significant indications from my government and the federal government that they're prepared to support the communities and the regions to get ready. If you're not ready, you lose confidence."       SEE CBC REPORT ON ABOVE MEETING    *        WESTERN CANADA--Yesterday, members of the Joint Committee on Natural Gas Pipelines completed the second day of their Western Canada trip, visiting the Northwest Territories.  They toured the Arslanian diamond processing facility, guided by Ross Bowring, NWT Housing Authority    They Met with Minister Joseph Handley to discuss NWT economic overview, oil & gas development,  Alaska/NWT trade opportunities and future cooperation.  Doug Cardinal of the Aboriginal Pipeline Group briefed them on the Mackenzie Delta/Aboriginal joint ownership plan for a pipeline tapping Canadian reserves.  Last night Minister Handley hosted a reception in the Great Hall of the Legislative Assembly attended by local community, business and Aboriginal leaders as well as government officials including Commissioner Glenna Hansen and Speaker Tony Whitford.  Yesterday, they visited Premier Pat Duncan in Whitehorse, also conferring with MLA Scott Kent, Minister of Economic Development, Department of Economic Development representative, Janet Moody, and Greg Komaromi, Director of Oil & Gas Business Development.  Tomorrow the group will meet privately with NWT officials and depart for Edmonton in the early evening.  Touring members and guests include: Sen. John Torgerson (Chairman), Rep. Joe Green (R-Anchorage), vice-chairman, Sen. Robin Taylor (R-Wrangell), Sen. Johnny Ellis (D-Anchorage), Sen. Donny Olson (D-Nome), Rep. Scott Ogan (R-Wasilla), Rep. John Davies (D-Fairbanks), Rep. Mike Chenault (R-Kenai), Rep. Hugh Fate (R-North Pole), Rep. Reggie Joule (D-Kotzebue), Charles Brower, vice-president of marketing, Arctic Slope Regional Corporation, Bill Stamps, President, The Alaska Support Industry Alliance, a 35,000 member oil & gas industry advocacy group .  David Gray, staff to Senator Donald C. Olson and Protocol Mission, Ronda Thompson, Special Assistant on International Trade Policy, Press Secretary,   (Photo Below-Torgerson, right, and Green at 8/17-18 meeting in Anchorage).       *       WHITEHORSE STAR, Political Pipeline Alliance Forming, by Jason Small-- …During a 90-minute meeting yesterday with a group of Alaskan legislators led by state Senator John Torgerson (Photo-right)..SEE FULL STORY HERE....

8/21:  Today, Northern Gas Pipelines provides a report of  Chairman Bill Corbus' 8/13 meeting of his "State Pipeline Ownership and Tax Structure Committee" of the Alaska Highway Natural Gas Pipeline Policy Council, in Anchorage.  Several issues, treated individually, would rate newspaper headlines.  Please review.      

8/20:  WESTERN CANADA--Today, members of the Joint Committee on Natural Gas Pipelines begin their Western Canada trip.  They will be meeting with local government representatives to discuss natural gas pipeline issues.  Members and guests include: Sen. John Torgerson, Rep. Joe Green (R-Anchorage), vice-chair of the committee, Sen. Robin Taylor (R-Wrangell), Sen. Johnny Ellis (D-Anchorage), Sen. Donny Olson (D-Nome), Rep. Scott Ogan (R-Wasilla), Rep. John Davies (D-Fairbanks), Rep. Mike Chenault (R-Kenai), Rep. Hugh Fate (R-North Pole), Rep. Reggie Joule (D-Kotzebue), Al Adams, government affairs director, North Slope and Northwestern Arctic Boroughs, Charles Brower, vice-president of marketing, Arctic Slope Regional Corporation.  (Photo-Torgerson, right, and Green at 8/17-18 meeting in Anchorage).        *       Northern News Services, by Malcolm Gorrill, Inuvik-- About 20 people attended a community meeting last week at Ingamo Hall to hear about proposed seismic surveys this winter in the Mackenzie Delta. Meetings were also held in Tuktoyaktuk and Aklavik.  John Duckett, senior engineer with AEC West Ltd., spoke on his company's plans to do three seismic programs. A 3D and a 2D program are proposed for Burnt Lake, with a 2D program scheduled for Iomatkotak, southeast of Kugmallit Bay. ... Anadarko Canada Corp. plans to conduct a 2D Immerk seismic program, extending across the northern portion of the Kendall Island Bird Sanctuary. Frontier operations manager Rob Jefferies said Anadarko is aiming to start in late February or early March 2002.      *       WHITEHORSE STAR, By Stephanie Waddell--Citizen Don McKenzie is planning a rally and petition drive to demonstrate Yukon Territory support for the Alaska Natural Gas Transportation system (ANGTS).    *       Houston Chronicle by Anthony DePalma, NYT--Canada's constitution makes Klein a kingpin of Canadian energy. Provinces, not the federal government in Ottawa, control most natural resources. And Alberta has most of Canada's energy resources.  "We would intervene," (Premier Ralph Klein)... said in an interview. For instance, he said, he wants any natural gas pipeline from Alaska that passes through his province to give local refineries the chance to strip away some byproducts used to make petrochemicals. That may be, he acknowledged, "a self-serving interest," but one on which he would never give an inch. *       New York Times by Timothy Egan-- ... Ms. Norton says she has yet to build her legacy because she has been waiting to put her top political appointees in place. Now that she has named J. Steven Griles, a former lobbyist for mining and chemical interests, as the No. 2 person at Interior, Camden Toohey, a lobbyist for Arctic oil drilling, as her top official in charge of Alaska, and Ms. Kimball, a lobbyist for Western business issues, as her chief aide in the West, Ms. Norton is ready to go.....    

8/18-19 (Weekend):  Upcoming gas pipeline related events:  9/24-25, Houston, The Canadian Institute and American Conference Institute Energy Group present the ARCTIC GAS SYMPOSIUM …Tapping into Natural Gas Production and Infrastructure Opportunities in the Alaska North Slope, Mackenzie Delta and Beaufort Sea Regions.  Conference highlights:  The question of the decade - could an initial pipeline route be announced by year-end? Natural gas and liquids development in Alaska.  Gas offtake from the North Slope fields: what can be expected? Where will gas likely enter the Lower 48, where will the volumes go, and what could this mean for existing dynamics? How Aboriginal communities would like to see the Arctic energy industry develop. Current projects in Canada's Arctic: perspectives of both a large cap and a junior Producer.  The challenges faced by engineering, construction and drilling firms in the Arctic's unique operating environment.  Will the financial markets reward you with a higher multiple than your peers for seeking out growth through Arctic development?  Participants include many familiar names:  CONFERENCE CHAIRS-Judy Brady, Executive Director, Alaska Oil and Gas Association (AOGA); Wayne Andrews, Senior Analyst, Vice President, Exploration & Production, Raymond James & Associates.  KEYNOTE SPEAKERS-The Honourable Pat Duncan, Premier of the Yukon; The Honourable Stephen Kakfwi, Premier of the Northwest Territories.  SPEAKERS-Dr. Thomas Kitsos, Deputy Director, Minerals Management Service, US Department of the Interior; Robbie Schilhab, Alaska Gas Development Manager, ExxonMobil Production Company (Alaska Gas Producers Pipeline Team); Corry Woolington, Land Manager-Alaska, Chevron U.S.A. Inc.; Robert Purgason, Vice President, Hydrocarbon Development, Williams; Grand Chief Ed Schultz, Council of Yukon First Nations; Jacob Adams, Chair & President, Arctic Slope Regional Corporation; Michael Scott, Vice President, Northern Development, BP (Canada) Energy Company Ltd.; Marty Cheyne, President & Chief Executive Officer, Devlan Exploration; William (Bill) Cheek, Chief Executive Officer Natchiq, Inc.; Nick Campbell, Manager of Alliances, Partner, Colt Engineering Corporation; John R. Dosher, Senior Vice President, The Pace Consultants Inc.; Forrest E. Hoglund, Chair & Chief Executive Officer, Arctic Resources Inc.; Wayne Sartore, Vice President, Northern Pipeline Development, Enbridge Inc.; Cuba Wadlington Jr., Executive Vice President, Williams, President & CEO, Williams Gas Pipeline; Robert Hunt, Senior Vice President, Akita Drilling Ltd.; Roland George, Principal, Purvin & Gertz, Inc.; Jim Denny, President, Nabors Alaska Drilling Inc.; Jeff Bigger, Business Development Manager, Syntroleum Corporation; Jeff B. Lowenfels, President & CEO, Yukon Pacific Corporation; Matt Janisch, Managing Director, BMO Nesbitt Burns Inc.; Wayne Andrews, Senior Analyst, Vice President, Exploration & Production, Raymond James & Associates     *     September 5 - 6, 2001, Oil Sands Trade Show & Conference, Fort McMurray, Alberta.        *        October 2-3 Pacific Norwest Strategies Conference, Portland, Oregon.          *        October 10-12, 2001 The Fourth Monetizing Stranded Gas Reserves, Omni Interlocken Resort in Denver, Colorado.     *        March 4 - 5, 2002 - North American Natural Gas Conference and Calgary GasExpo 2002, Telus Convention Centre, Calgary, Alberta.

8/17:  Northern Gas Pipelines alerted readers on 8/4-5 that improved GTL technology would grow quickly in prominence. 

NIKISKI--A state of-the-art power generation system designed to increase electrical efficiency and reduce emissions will be demonstrated at BP's gas-to-liquids (GTL) test facility.  The technology could have far-reaching implications for power  generation in remote areas like villages in rural Alaska.  The U.S. Department of Energy is providing funding assistance with a $2 million grant requested by U.S. Senator Ted Stevens (Photo, below).  Chugach Electric Association also secured and will administer a $450,000 grant from the Cooperative Research Network of the national Rural Electric Cooperative Association.  The fuel cell will be connected to the local electrical grid operated by Homer Electric Association to study operating characteristics and costs.   

BP will install a Siemens Westinghouse "solid oxide fuel cell" unit that will convert natural gas directly into electricity through an electrochemical process similar to that used in a battery.  With few moving parts, it runs quietly, and it significantly reduces air pollution.  The $6.5 million project will begin operating by mid-2003.  "This technology isn't commercial today, but we believe it has tremendous potential, both for BP and for the State of Alaska, and this project will help to accelerate commercialization," said Shane O'Leary, BP's GTL program manager (Photo, right-5-17 escorting Governor's Alaska Highway Gas Pipeline Policy Council on tour).  "It may be very attractive for future use in remote and environmentally sensitive locations like offshore oil and gas platforms, as well as areas of rural Alaska that rely on diesel fuel for power... (full story here).

8/16:  FAIRBANKS--(JOINT COMMITTEE ON GAS PIPELINES, 2nd day of meetings yesterday.   See the Committee's 8/14 news release and yesterday's release and Fairbanks Daily News-Miner; Northern Gas Pipelines is preparing a more detailed, unofficial report for readers.) U.S. Senator Ted Stevens (Photo taken 8/15 evening in Anchorage) visited the Committee at the end of their hearings last evening.  “Don Young has done the impossible again,” he said, “with respect to getting an ANWR provision in the Energy Act, thanks to help from organized labor.”  He said that some key Senate leaders oppose the ANWR provision.  With major bills awaiting action, he observed that under Senate procedures the Energy Act may not see action this session.  Asked about some Senators threatening to filibuster an ANWR provision in the Energy Act, Stevens said, “Well, I’ll filibuster if it’s not in the bill.”  Stevens said he’d not studied the producer-recommended, gas pipeline legislation in detail (To obtain your copy, see 8/9 report below), was concerned about it but reflected confidence that it wouldn’t go forward without support of the Alaska Senators.  He added that if a route through the State were not economic now, he thought Alaskans would be content to wait until an acceptable route were economic.  In response to Chairman John Torgerson’s questioning, Stevens said that tax legislation aimed a creating an ‘escape hatch’ for producers in the event the price of gas dropped below a certain ‘floor’ might receive favorable consideration.  He added that such language could be viewed suspiciously by Lower 48 companies though and should, “…be worked out in conjunction with the gas industry as a whole.”  At conclusion of yesterday's meeting, the committee decided to meet on September 19 to seek consensus on producer legislation, exploring provisions line by line with help from the producers, Foothills, the State administration and other experts.    (Note: Washington representatives have earlier told the Governor's Alaska Highway Natural Gas Policy Council that Senate Energy Committee staff would be working on the Energy Act this month and that the full committee would be reviewing the Energy package in September.  Watch for increasing concern about Alaska having time to prepare a unified position before the Senate Energy Committee acts.  -dh)        *        WHITEHORSE STAR--Alaska’s Joint Committee on Natural Gas Pipelines will be in Whitehorse on Monday, led by the state senator who pushed the bill making a Beaufort Sea pipeline illegal. ...   Meanwhile, Curtis Thayer, the spokesman for the Alaska producers, said today it’s still the intent of the producers to have a decision on feasibility and route selection by year’s end.      *     Members of the Joint Committee on Natural Gas Pipelines will visit Western Canada to meet with local government representatives there to discuss the issues surrounding bringing natural gas from the northern coastlines of Alaska and Canada to market.     *     WASHINGTON, (AP WorldStream via COMTEX) -- Teamsters president James Hoffa says his union's support of President George W. Bush's plan to drill for oil in an Alaskan wildlife refuge is not creating a rift with Democrats.

8/15:  JOINT COMMITTEE ON GAS PIPELINES, 2nd day of meetings today.   See the Committee's news release about yesterday's meeting; Northern Gas Pipelines will have a more detailed, unofficial report for readers.        *          See the TAPS EIS Renewal, August Newsletter.   Houston Chronicle, by David Ivanovitch, WASHINGTON -- President Bush on Tuesday named Pat Wood, the architect of Texas' electric deregulation plan, to head the Federal Energy Regulatory Commission.        *        Last night in Anchorage, U.S. House of Representatives Speaker Dennis Hastert told friends of Senator Ted Stevens that Alaska has "...an extraordinary team..." representing it in the Congress.  He said that the Alaska delegation provided a strong element of support for President Bush's initiatives to improve U.S. trade, energy and economic policies.  "If we don't have energy we don't have an economy," Hastert said (Photo-Hastert between former Alaska Governor Walter J. Hickel-r, and Stevens).   Inuvik, Northern News Services by Kevin Wilson--Inuvik is booming as oil and gas exploration heats up again in the Beaufort Delta. Available housing has dried up as the population has grown, companies have converted some units into staff housing, and other units have been converted into hotel-type suites.

8/14:  JOINT COMMITTEE ON GAS PIPELINES meets in Fairbanks, August 14-15: Senator John Torgerson, Chair; Representative Joe Green, Vice-Chair .  Presentations include Department of Revenue: State's role in gas pipeline financing; Alaska Oil and Gas Conservation Commission: permits, orders, findings and oil recovery; Department of Law: legal questions; Legislative Counsel: legal questions; Joint Pipeline Office: Memoranda of Understanding; Congressional report; John Katz, Special Counsel to the Governor: Canadian position and US Legislation; Robert Loeffler: FERC, tariff, regulatory issues; FERC questions; Alaska Regulatory Commission: authority of FERC/ARC; Natural Gas Policy Council update; Department of Revenue: tax issues; Cambridge Energy: market conditions; Alaska Natural Gas to Liquids Co. overview; Producer analysis; Foothills Pipe Lines, Ltd. analysis.  Northern Gas Pipelines is monitoring the meeting and will produce a report.          *            Fort St. John, B.C. - Work on a Petro-Canada pipeline in northeast B.C. is being blocked by a native band.         *       Yesterday's Gas Council report should be ready for your review tomorrow.  (See 8/13 below).     *     

Dawson City, Yukon (Photo), CBC--Up to 200 people are expected for the Alaska State Chamber of Commerce meeting next month.  (Expect gas pipeline issues to permeate the discussions.) 

8/13:  Today, Chairman Bill Corbus (Photo-8/13 meeting) is meeting with his "State Pipeline Ownership and Tax Structure Committee" of the Alaska Highway Natural Gas Pipeline Policy Council, in Anchorage (Our meeting report is scheduled for release here, tomorrow, covering: investment, financing, tax structure, TAPS profitability, producers' perspective.)     *       Phillips Petroleum Files SEC 10-Q Report-Note 2--Alaskan Acquisition.  In the first quarter of 2001, Phillips completed the acquisition of Atlantic Richfield Company's (ARCO) Alaskan businesses with the final settlement of all remaining post-closing issues with BP p.l.c.       *       Juneau Empire Special Report: "Refuge of Riches," by Bill McAllister     *     Yellowknife (Aug10/01), Northern News Services - Aboriginal groups can scrape together about $25 million of the $60 million they need to get a Mackenzie Valley pipeline off the ground, it was revealed here last week. … "We would have to raise a billion dollars, of which 30 per cent would have to be equity. The aboriginal people don't have that kind of money, but if all the aboriginal people coming together, we can ask the federal government to assist us," APG representative Wilf Blonde told the meeting. … A second pipeline proposal from Arctic Resources Corporation (ARC) says aboriginals can own the entire pipeline. That company had a public meeting similar to APG's in Fort Simpson two weeks ago.   ARC is promoting a pipeline through the Mackenzie Valley that would carry Alaska gas in addition to Canadian gas from the Beaufort Delta. … "ARC's proposal would not be financeable without significant backstopping," said a letter from Esso President K.C. Williams to APG chair Nellie Cournoyea. … Esso's parent company ExxonMobil is one of the main producers of Alaska gas. Esso representatives say that fact makes the pipeline issue "very complex" for the parent company and Esso subsidiary, and that so far Esso Canada is operating independently from ExxonMobil.  Esso's Randy Ottenbreit said ExxonMobil has not decided if it would support a proposal competing with the Mackenzie Valley project. The Alaska government is pushing for a pipeline along the Alaska Highway and through Yukon.     *     Fort Simpson, Northern News Services by Dan Sullivan-Deh Cho First Nations (DCFN) representative Dennis Nelner submitted his resignation Tuesday, even though the DCFN withdrew its support for the group back in May.

8/11:   Western Governors Conference, Coeur d'Alene, Id.--Premiers Pat Duncan (Yukon Territory) and Ralph Klein (Alberta) are invited to sit in with members of the Western Governors Conference today (8/12).  They are expected to discuss energy issues, including gas pipeline matters.  CBC       *       Gas Hovers around $3/MCF      *       MOSCOW (AP) -- Russian oil giants Yukos and Sibneft are teaming up to study offshore zones off the Arctic peninsula of Chukotka, across from Alaska, Sibneft officials said Thursday.         *          GLOBE & MAIL, Ottawa--The federal government is spending $3-million to study an Arctic deep-water port and all-weather road on the calving grounds of one of the continent's largest caribou herds, according to documents obtained by The Canadian Press.  Although Canada has criticized U.S. President George W. Bush for favouring oil drilling in Alaska on the calving grounds of the Porcupine caribou herd, which crosses into Yukon, the Department of Indian and Northern Affairs is considering construction on a similar range covered by the Bathurst herd in Nunavut.  "It does raise some significant issues about the consistency of federal policy," said Kevin O'Reilly of the Canadian Arctic Resources Committee ... Ottawa, along with industry and Nunavut and Inuit organizations, developed the $6-million, three-year plan to study environmental and economic impacts. Ottawa is shouldering half the cost.  ... Building the road and the port is estimated to cost about $135-million. Construction could begin in 2004....        *           WHITEHORSE, YT , CBC- The dream of a Yukon-Alaska railroad to the"Lower 48" is still alive. Railroad executives and political leaders from both sides of the border met in Calgary this week, and Yukon MP Larry Bagnell said none of them laughed at the idea. ... "Alaska spends almost the price of the railway just in road maintenance in a year, so economically it's not out of the question," Bagnell pointed out. "And of course all the worlds major oil fields are served by railways." The railway would link Faibanks, Alaska with railheads in northern BC. Bagnell expects Canadian transport officials will begin official talks with Washington soon.

8/10:   Calgary Herald, by Stephen Ewart--Archie Dunham, the chief executive of Conoco Inc., has a message for aboriginal groups demanding 100 per cent ownership of a proposed Mackenzie Valley natural gas pipeline: No.  ... Dunham, who was in Calgary for the first time since signing the $9.8-billion takeover of Gulf Canada in May, spelled out the position while asserting that Conoco will be a much more active proponent of speedy development of Canadian Arctic gas than Gulf had been. ... Winter Lennie, a member of the Sahtu First Nation seeking complete native ownership for the pipeline, wasn't alarmed by the comments from the newest player in the renewed effort to develop the massive northern resource.  "It's a only a bargaining position," said Lennie, president of Western Arctic Energy Corp. in Norman Wells, N.W.T. (Note: Readers find it difficult to separate the apples from the oranges.  Dunham is referring primarily to a Mackenzie Delta-only project which taps Canadian gas.  Lennie's group has been primarily focused on Aboriginal ownership of the northern route system proposed by ARC to tap both Prudhoe Bay and Delta reserves.)        *       

Alaska Congressman Don Young (Photo-left, 8-9-01), touring visiting colleagues around the state this week, met with media representatives yesterday at the Sheraton Anchorage Hotel.  Young was optimistic about chances for full Congressional passage of ANWR provisions in the Energy Act.  He reported that this trip, as others before it, resulted in greater understanding of Alaska and its important issues like ANWR.  He said that even in a depressed economy, the country's oil requirement is increasing.  He criticized opponents of the recently House-passed Energy Act, now on its way to the Senate, who see conservation of energy as the best solution.  "You can't conserve yourself into self sufficiency," he said.  Of the proposed Gas Pipeline Act (i.e. copy available below), he told Northern Gas Pipelines that he remains open minded and, “…has not closed the door on it,” while continuing to express steadfast opposition to the northern route.  Asked about a possible scenario in which only a northern route were economic, and would he still oppose it, he replied, "Absolutely".  According to Young, the gas is "...extremely valuable to the people of Alaska, especially if ANWR doesn't go."   He spoke to the value added benefits of in-state use and a potential petrochemical industry.  "I fought the same battle in 1973.  I wanted a North-South route for the oil pipeline and the environmentalists wanted to take the oil to the Midwest by crossing what is now the Arctic National Wildlife Refuge.  Then it was an acceptable area to cross; now it is their 'Serengeti of the North'."  Asked about Alaska's deficit spending which could reach -$1 billion within 5 years, Young said, "Alaska is spending money but not creating sufficient new wealth.  We need new projects such as the gas pipeline could deliver."  Accompanying Young was Congressman Henry E. Brown of South Carolina who remarked afterward that, "Don's concerned about his own people having gas.  This is a beautiful country but it needs infrastructure to support the quality of life the people desire." 

(Photos: upper right-Brown invites Alaskans to experience southern hospitality and catfish at the Dock Restaurant in Monks Corner, near Charleston; former Alaska legislator Lloyd Jones-lower right, now with Young's House Transportation & Infrastructure Committee, helps host the visiting Congressmen and says his committee will be involved in gas pipeline safety issues.)

8/9:  GAS PIPELINE LEGISLATION DRAFT MATERIAL.  Late yesterday, this office received copies of two draft documents now being circulated in Washington and Alaska: "Alaska Natural Gas Pipeline Act of 2001", and an associated Background Paper, which we offer for your review.  These drafts were prepared by the Alaska Gas Producers Pipeline Team which is in the midst of a $75 million plus research effort to determine if any North Slope gas transportation system is feasible at this time and, if so, which route should be undertaken.  The result of that highly expedited, one year research effort is expected by January.  Meanwhile, the U.S. House of Representatives last week passed the "Securing America's Future Energy Act of 2001"(See our 8/1 report).  This month, the Senate Energy Committee staff will be preparing a Senate draft version of the Act which could be moved out of committee in September or October, in time for full Senate action and possible conference committee resolution of differences before Congress takes its holiday break.  Accordingly, if any legislation were needed to support timely movement of a gas pipeline project, the time for effecting any change is with the Senate now, since the House has generally completed its energy business for the year.  Readers will note several interesting dynamics at work here.  First, the producers regard the concepts embodied in the draft Pipeline Act critical for a number of reasons, generally outlined in the background paper.    Second, the House version of the Energy Act contains a provision which would foreclose on one of the routing options the producers are considering (i.e. northern route).  Energy Committee hearings are sure to focus on the contradictory nature of a Pipeline Act which gives an opening for either route and the House's Energy Act which precludes one route.  Third, some believe no pipeline legislation is necessary for the southern route which was addressed with passage of the Alaska Natural Gas Transportation Act of 1976.  Fourth, as we reported (i.e. See Policy Council report, 8/2), various Governor's Alaska Highway Natural Gas Pipeline Policy Council members believe the Pipeline Act "greases the skids" for a northern route, wish to review it in detail and make recommendations to the Governor.  Those recommendations could go beyond commenting on the draft and extend into submitting provisions which they believe may be needed to protect state interests.  Contributing to this already extensive dialogue will be the Alaska State Legislature's Joint Committee on Gas Pipelines, scheduled to meet next week and take the matter up with Governor Knowles' Washington representatives and others.  The chairman of the committee, Senator John Torgerson, wrote an Alaska bill, SB 164 (passed and signed into law), also discouraging a northern route.  Fifth, as the Pipeline Act draft progresses, expect Foothills Pipe Lines, Ltd., beneficiaries of the 1976 legislation, to weigh in.  Arctic Resources Company, independently promoting a northern route, will have an opinion.  Since the northern route is the only option they are promoting, they cannot proceed if the Beaufort routing ban version of the House Energy Act is adopted.  While the draft Pipeline Act would at least appear to give the northern route equal footing with a southern route, ARC may object to certain requirements.  Then, Sixth, there is Canada.  While Yukon Territory Premier Pat Duncan has applauded the House's Energy Act banning the northern route, Northwest Territories Premier Stephen Kakfwi has strongly criticized the measure, as have certain Federal Canadian officials.  With NAFTA and numerous relationships existing between the two countries--each the other's largest trading partner--it is possible that the Gas Pipeline Act and related energy package ultimately will be influenced by understandings reached between President Bush and Prime Minister Chrétien.  -dh       *       Northern News Services, by Mike W. Bryant, YELLOWKNIFE-- ... A big item on (Premier Stephen) Kakfwi's agenda at the (Premiers) conference was to shore up support for building the Mackenzie Valley pipeline.  Kakfwi was eager to convince other premiers that putting the pipeline through the territory, as opposed to following the Alaska Highway, is the best option for all Canadians.  "The premiers will support a construction of pipeline projects that provide significant benefits to Northern people and Canadians," Kakfwi said. "It's a statement of support, I think, for taking Canadian gas to the market first before American gas."        *        National Post, by Claudia Cattaneo, CALGARY -  ... Mr. (Archie) Dunham (Conoco's CEO) said he would like to see the timetable for the Mackenzie Delta project cut by at least two years, with a goal of starting to move gas in four to six years, rather than the six to eight years currently envisioned. He said he has made the project the No. 1 priority of Henry Sykes, the new president of Conoco Canada.     "I cannot imagine a politician in Canada agreeing to a pipeline that [is not open to] Mackenzie Delta gas," said Mr. Dunham, who described himself as a big supporter of George W. Bush, the U.S. President, and a personal friend of Dick Cheney, the Vice-President. He also said he has a strong relationships with federal and provincial officials in Canada, as well as with Alaska's governor and fellow native Oklahoman, Tony Knowles.     "We are going to use all those relationships to try and accelerate the pipeline schedule," he said. "I think there is going to be room for compromise, it's going to be a political issue. It will be settled politically and the producers are going to be very supportive," Mr. Dunham said. He said Conoco wants to own a piece of any pipeline transporting its gas....